Eurozone is not on the verge of collapse and Simon Johnson is wrong on the matter as he suggests that the European leaders have failed terribly to transform the economic and market trends Europe. While on the other hand, Guido Westerwelle defers from Johnson who is optimistic about the Eurozone situation (p.2). He argues that the European Union and the member states stand a better chance to regain economic stabilization, this shall be instigated by the efforts to adjust the current short-term economic hardships that will be a major contribution to the long-term.
The argument by Westerwelle has more conviction since European has adopted a common currency that shall aid in trading activities amongst the Euro members and the countries governed under the common currency agreed to maintain low-level government deficits (Westerwelle, p.3). The United States is one of the major trading partners to the European Union, therefore, this means that if the European Union failed it would majorly impact in the United States. This is a clear incentive for the United States to be in a position to influence other states to engage in the Eurozone bailout, the European Union has the best trading partners, among them the United States. As a fact, Wetherell's argument aligns with the progress for economic development for Europe (Rourke, n.p).
Jones and Westerwelle (p.4) state that the key trouble that engulfs the Euro Area is a heavy indebtedness with an economy under recession, but with the implementation of policies that reduce the market risk. This can rebuild the confidence in the investors and have the confidence to transact in Euros without the risk of value loss (p.3). Germany can act as another major stimulus to Europes economy as their impact to the economy matched that of the United States.
Recently the Germany parliament approved more than 200 billion Euros in financial guarantees (Bibow, n.p). This is a move by a European Nation to show solidarity with the other Eurozone nations merged in the economic hardship (p.14). However, the money stimulus cannot be a sufficient remedy for the Eurozone problem but policy reviewing is essential.
According to Deutsche Botschaft Windhuk (n.p), with the mega input by Germany into Europes economy, they this means that they would have more to convince the investors to join into lending the economy. The United States being one of the largest traders with the Eurozone this means that the mutual relationship would impact positively for both regions (p.15). The European Crisis would be re-adjusted gradually while the U.S benefited from the trade activities cutting down on Euro Zones debt. Therefore the situation is under progress while there is no real danger of collapse (Lane, p.51).
Rourke, John T., ed. Taking sides: clashing views in world politics. Dushkin Publishing Group, 2007.
Jones, David and Guido Westerwelle. "Jones | The Euro And Europe's Future". Unc.Edu, 2012, http://www.unc.edu/depts/diplomat/item/2012/0106/sp/sp_euro.html.
"Deutsche Botschaft Windhuk - 23.01.2012 - Speech By Dr Guido Westerwelle "The Euro And The Future Of Europe"". Windhuk.Diplo.De, 2017, http://www.windhuk.diplo.de/Vertretung/windhuk/de/07/__Pressemitteilungen/PM__2012/PM2012__en/Seite__pr__02__03__Rede__Bundesaussenminister__Brookings.html.
Lane, Philip R. "The European sovereign debt crisis." The Journal of Economic Perspectives 26.3 (2012): 49-67.
Bibow, Jorg. "The euro debt crisis and Germanys euro trilemma." (2012).
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